Country

Algeria

Algeria is the largest country in Africa and the Arab region with an area of 2,381,741 km2. With a total population estimated at 39.6 million persons, of which 71.2% is under the age of 30, Algeria is the third most populous country in the Arab region [1]. The Algerian population is growing at a natural rate of 2.15 percent and the life expectancy at birth is 77.1 years (2015).[5]

In tandem with an increase in adult literacy rate from 70% in 2002 to 79.6% in 2015, education attainment in Algeria has been on the rise, resulting in a more educated younger generation. The gross enrollment ratio increased from 105% in 2000 up to 119% in 2014 in primary education, and from 16% in 2001 to 35% in 2014 in tertiary education. [2]

Algeria is ranked among the upper middle-income countries [8] and is rich in natural resources, mainly crude petroleum, natural gas, phosphates, and iron ore. Algeria’s GDP (Purchasing Power Parity, 2011 constant prices) increased from Int$ 315 billion in 2000 up to Int$ 548.3 billion in2015.[2] The GNI per capita (Purchasing Power Parity) leveled at Int$ 14,280 in 2015, compared to an average GNI per capita of Int$ 16,445 in the Arab region.[2]

The annual growth rate of the Algerian economy averaged at around 3.7% [3] (2005 constant prices) in the last five years.The growth rate remained constant 3.8% in 2014 and 3.7% in 2015[3] despite the drop of international oil prices dropped from 99 USD/bbl in 2014 down to 52 USD/bbl in 2015.[4] The high contribution of the hydrocarbon sector to the GDP— at around 23.2%[5] of GDP— is still considered a challenge to the Government. Between 2000 and 2013, oil revenues, as a percentage of total government revenues, declined from 74% in 2000, down to 46.7% in 2013.[6] Over the same period, the public expenditures increased by more than 410%[6] outpaced the increase in revenues of 139%[6] resulting in a cash deficit of around DZD 2,129 billion in 2013.[5] Over the last 15 years, Algeria reduced its public debt from 62% of GDP in 2000 to around 8.7% in 2015,[3] with its external debt dropping from 46.6% of GDP in 2000 down to 2.9% of GDP in 2015.[3] Its inflation rate dropped from 9% in 2012 to 4.8% in 2014.[5]

Algeria is a leading natural gas and oil producer in Africa and one of the largest gas suppliers to Europe. Exports of fuel and other lubricants represented 96% of Algeria’s exports to the world in 2014.[5] Net natural gas exports leveled at 1,518 billion cubic feet in 2013 and crude oil at 421 million barrel in 2012. However, due to a limited foreign investment in new oil fields and declining output at more mature ones, natural gas and crude oil production have declined down to 2,813 billion cubic feet (2013) and 518 million barrels (2014) from 3,151 billion cubic feet (2005) and 624 million barrels (2007), respectively.[4]

Algeria’s trade balance remained positive in 2014, but has been declining in the past decade. The EU absorbs half of its exports, making it Algeria’s main trading partner. However, Algeria’s trade balance with the Greater Arab Free Trade Area (GAFTA) has been declining and has recorded a deficit of USD351 million in 2015 compared to a surplus of USD440 million surplus in 2014, mainly due to the decline in oil prices.[7]

On employment, Algeria witnessed a significant drop in its unemployment rate, from 29.8% in 2000 to its lowest level at 9.8% in 2013, but the rate has increased slightly in 2015 up to 11.2%. Youth unemployment is particularly high at 29.9%. That said, the Algerian public sector continues to assume an important role in absorbing the labor force, employing 42% of the total employed people.[5]

The Algerian women labor force has significantly improved throughout the previous decade, increasing from 13.9% in 2009 to 16.4% in 2015. In parallel, women unemployment rate reached 16.6% in 2015 from 28.71% back in 2000. Despite these improvements, female youth unemployment rate remained high at 45.3% compared to a rate of 26.7% for the male youth. Over this period, women have been outpacing men in tertiary education, with the gender parity index in tertiary education rising from 1.08 in 2000 to 1.53 in 2014.[5]

This overview has been drafted by the ADP team based on most available data as of 30 September 2016.

Publications

Since its independence in 1962, Algeria, as an oil producing country, undertook the construction of a socialist economy supported by heavy industrialization and substantial in human capital. This strategy of development was based on state-led industrialization, after...Read More

Besides the desk review and statistical data analysis of the 2011 labour force survey and administrative data, some 10 stakeholders – government officials, former executives of employment agencies, representatives of social partners (trade unions and employer...Read More

Explanatory note on the 2014 Human Development Report composite indices. The 2014 Human Development Report (HDR) presents the 2014 Human Development Index (HDI) (values and ranks) for 187 countries and UN-recognized territories, along with the Inequality-adjusted HDI...Read More